Use the table below to answer the following question(s).
Qualis Investments is a private limited business that manages personal financial portfolios. The company manages six mutual funds and has a client that has acquired $750,000 from an inheritance. Characteristics of the funds are given in the table below.
|||Qualis Mutual Fund Data|||||
|||||Expected Annual Return||Risk Measure|
|1||Qualis Low-priced Stock Fund||7.23%||11.87|
|2||Qualis Multinational Fund||8.42%||12.62|
|3||Qualis Mid-cap Stock Fund||6.66%||13.72|
|4||Qualis Mortgage Fund||2.72%||3.37|
|5||Qualis Income Equity Fund||8.89%||8.4|
|6||Qualis Balanced Fund||3.50%||6.91|
The company recommends that no more than $300,000 be invested in any individual fund, and that at least $80,000 be invested in each of the mid-cap stock and mortgage fund. The total amount invested in the low-priced and multinational funds are at least 35% of the total investment. The client would like an average return of at least 6%. Assume that X1- X6 represent the dollar amounts invested in funds 1 through 6, respectively.
Which of the following is the constraint for the weighted return?
|( 7.23 X1 + 8.42 X2 + 6.66 .X3 + 2.72 X4 + 8.89 X5 + 3.5 X6 ) / 750,000|
|7.23 X1 + 8.42 X2 + 6.66 .X3 + 2.72 X4 + 8.89 X5 + 3.5 X6 ≥ 6.00|
|X1 + X2 + X3 + X4 + X5 + X6 = 750,000|
|( 7.23 X1 + 8.42 X2 + 6.66 .X3 + 2.72 X4 + 8.89 X5 + 3.5 X6 ) / 750,000 ≥ 6.00|